FTTx Panorama - Services & Positioning - Broadband World Forum 2013


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Worldwide FTTx overview, FTTx Access platforms, Leading FTTx players, FTTx Services and Pricing Strategies

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FTTx Panorama - Services & Positioning - Broadband World Forum 2013

  1. 1. Telecom Player & Market watch Worldwide panorama of FTTx rollout FTTx services & pricing strategies Speaker Roland MONTAGNE Director Telecoms Business Unit Mob : + 33 6 80 85 04 80 r.montagne@idate.org Broadband World Forum 2013, Amsterdam, October 23rd, 2013
  2. 2. Agenda Worldwide FTTx overview FTTx Access platforms Leading FTTx players FTTx Services and Pricing Strategies Stop by and see us… … or follow us on: IDATE, DigiWorld, DigiWorld Institute and DigiWorld Yearbook are international trademarks of IDATE 2
  3. 3. IDATE FTTx Watch Rising to the challenge of deploying FTTH, copper and coax based technologies are gaining momentum • Methodology: bottom-up approach – – – Desk research Direct contacts with leading players and IDATE’s partners in the countries Information exchange with FTTH Council Europe members • FTTx Panoramas for MENA, LATAM & APAC Regions and Europe (+70 countries analyzed) – For each country, IDATE provides data per player for FTTH/B and other fiber-based architectures – Each player is characterized via dedicated parameters : technical, financial, business model, figures – Around 340 fibre projects listed in EU39 • IDATE FTTx Watch – Providing market data by country (+70 covered) and by technology – forecasts for the coming months and years – Strategic & technological analysis: Expert analysis delivered via bimonthly insights and analysts' comments on key FTTx market issues – Five-year forecasts for FTTx: Thanks to a primary research on 150+ FTTx market players, we provide penetration and subscription data and forecasts for more than 70 countries – Vendor market share: In-depth analysis of technological Deliverables: – A unique, continually updated FTTx market database – In-depht marker reports – bi-Monthly insights 3
  4. 4. Worldwide overview Superfast technologies(1) represent 21% of broadband access subscriptions at the end of 2012 FTTH/B is the leading superfast broadband solution, far from FTTLA then VDSL - FTTH/B represents 69% of FTTx subscriptions at the end of 2012, compared to 20% for FTTLA + DOCSIS 3.0 and 11% for FTTN+VDSL Breakdown of superfast broadband technologies, at end 2012 FTTLA 20% FTTH/B 69% VDSL 11% Source: IDATE For definition of superfast platforms we have considered here 3 main architectures: FTTH/B, FTTN and FTTLA + DOCSIS 3.0 4 Copyright © IDATE 2013 Source: IDATE
  5. 5. Worldwide overview But the regional breakdown is very heterogeneous FTTH/B is clearly the technology of choice in APAC whereas FTTLA is leading the superfast broadband market in Western Europe and North America. VDSL is a technology of choice for several European incumbents. Latin America and Middle East countries are at the very beginning of their FTTH rollouts: they will participate to the global growth of superfast broadband more and more in the coming years. There are still questions from large players regarding the opportunity to deploy FTTH/B or VDSL, mainly in Europe. Several parameters are to be taken into account among which, of course, the required investment. Nevertheless FTTH/B rollouts did progress in certain European countries which is encouraging at a time when EU Telcos are seeing their margins shrinking. Some players are betting on the future capacities of copper-based networks. 5 Copyright © IDATE 2013
  6. 6. Part of superfast broadband technologies in total Broadband Part of FTTx architectures (1) in total Broadband by region, in December 2012 World = 169.8 million FTTx subscribers Europe (2), 30 million FTTx subscribers Other Technologies FTTx North America, 35.4 million FTTx subscribers Other Technologies FTTx 83% 17% 68% Asia-Pacific, 70.8 million FTTx subs 32% Other Technologies 76% FTTx 24% Middle-East Africa, 0.8 million FTTx subscribers Other Technologies Latin America, 1.3 million FTTx subscribers Other Technologies FTTx FTTx 97% 3% (1) For definition of FTTx architectures we have considered here 3 main platforms : FTTH/B, FTTN and FTTLA (2) Europe here means EU 39: EU 27 + in particular Norway, Switzerland, Iceland, Israel, Turkey, Ukraine and Russia. Source: IDATE, June 2013 7 Copyright © IDATE 2013 97% 3%
  7. 7. Leading countries per FTTx solutions at end 2012 China is now the leading FTTH/B country in terms of subscribers, ahead of Japan Until end 2012, Japan was the most advanced FTTH/B market in the world. The dynamism of Chinese players has led to this new situation, and, due to its demography, China will remain the leading country in the near future. APAC countries are followed by the USA and Russia, just behind, with nearly 7.5 M FTTH/B subscribers. FTTH/B architecture is the only one deployed in GCC countries. VDSL technology is more deployed in Europe than elsewhere in the world, apart, of course, in the USA where AT&T has bet on that technology VDSL subscriptions will increase regularly in the coming years, as more and more European operators are thinking about rolling out FTTN+VDSL networks. However, those deployments will concern limited areas or smaller countries in terms of population, therefore VDSL will not overtake the two other main FTTx architectures. We can note also that VDSL is the main architecture deployed in Israel (2.2 M HP and 1.15M subscribers). FTTLA is the technology implemented by cablecos Mostly in the USA and in the North of Europe: thanks to FTTLA+ Docsis 3.0, cablecos can provide up to 150 Mbps to the end users. Cablecos do not plan to expand their FTTLA coverage to larger areas than their current cable footprint. 8 Copyright © IDATE 2013 Top 5 FTTH/B countries (Thousand subscribers) China Japan South Korea USA Russia 27 400 25 500 11 070 8 600 7 417 Source: IDATE, June 2013 Top 5 VDSL countries (Thousand subscribers) USA Switzerland Germany Belgium Canada 7 500 1 275 1 270 1 200 1 200 Source: IDATE, June 2013 Top 5 FTTLA countries (Thousand subscribers) USA UK Netherlands Germany Poland 18 000 2 176 1 050 1 021 800 Source: IDATE, June 2013
  8. 8. World leaders, all FTTx architectures • 6 Asian and 4 American players are in the Top10 in the world • Only one player involved in large FTTN+VDSL deployment among them, then two cablecos upgrading their infrastructures to FTTLA • Those three players are present on the US market! Top 10 worldwide players, at end 2012 #6 8.5 M subscribers FTTLA 6.23 M subscribers FTTH/B #4 #3 7.7 M subscribers FTTN+VDSL #5 #1 11.9 M subscribers FTTH/B #2 5.42 M subscribers FTTH #7 4.86 M subscribers FTTLA 2.75 M subscribers FTTH/B 2.72 M subscribers FTTB Source: IDATE, June 2013 9 #9 15 M subscribers FTTH/B #8 Copyright © IDATE 2013 17.16 M subscribers FTTH/B #10
  9. 9. Current offers landscape: Speed and Bundles Geography of FTTx access speed ranges The highest speeds are offered in Asia Pacific The first commercial 1 Gbps offer to the general public was launched in Hong Kong. In North America, access offers based on optical fibre (including FTTLA type) generally range between 50 and 200 Mbps. Verizon has launched a 500 Mbps offer. In Europe, most of the ultra-fast broadband players have chosen to offer more segmented broadband offers. But in the great majority of cases, the maximum speed proposed is 100 Mbps. Geography of FTTx packaged offers Bundles are far from being the general rule In the end, whichever the region concerned, packaged offers including Internet + telephony and/or television, rarely appear in operators' and providers' catalogues France stands out as the country of triple play Source: IDATE, June 2013 10 Copyright © IDATE 2013
  10. 10. Marketing FTTx access: all inclusive bundles or self service? The marketing of packaged services based on optical fibre access is not widespread throughout the world. Three major trends are emerging in the field of commercial offers: Access services can be marketed as stand-alone Complementary services (television, fixed and/or mobile telephony) can be marketed with Internet access, as part of dual, triple or quadruple play bundles Predefined bundles can be offered but adjusted by end users who select the services they need (access speed, number of TV channels etc.) Means of marketing services on FTTx networks Standalone Double play Triple Play Quadruple Play Internet only Internet + Telephony Internet + TV TV + telephony O O O O O Partnership with Verizon Wireless X X O X Default telephony O O X X O X O X X X X X X X X O O X O O O X X O X TeliaSonera TEO Verizon X O O O X O X X O X X O O O O X X Virgin Media O O O O O Comcast Free HKBN NTT Orange Telefónica 11 Copyright © IDATE 2013 Triple Play + Mobile No bundle but tariff discounts O
  11. 11. FTTx access: Prices Pricing strategies for FTTx offers vary greatly from one operator to another and from one region to another It is in Europe and Asia-Pacific that the lowest prices are found (on average 55 to 59 EUR per month for access at 100 Mbps, but there are very strong disparities within regions In contrast, the highest rates are unquestionably in the United States and Middle East. Price positioning of ultra-fast broadband triple play offers according to the level of speed segmentation 12 Copyright © IDATE 2013
  12. 12. Who are we? Founded in 1977, IDATE has gained a reputation as a leader in tracking telecom, Internet and media markets, thanks to the skills of our teams of specialized analysts. Now, with the support of close to 40 member companies – which include many of the digital economy’s most influential players – the newly rebranded DigiWorld Institute has entered into a new stage of its development, structured around three main areas of activity: • Time-tested analysis and consultancy Our expertise and client list > Consulting • An independent observatory Our catalogue of reports > Research • A European forum open on the world Our annual programme > DigiWorld Institute 13
  13. 13. Read more about our Fixed Broadband stream: research findings & products FT Tx research findings on our blog 14 All our FTTx reports & databases